Poverty among older Americans is increasing even as the overall U.S. poverty rate hit a record low last year, according to a new survey that tracks how low-income seniors and near-retirees are coping with fast-changing economic conditions.
Poverty among older Americans bucks national trend
The AARP Foundation has begun quarterly surveys of low-income adults 50 and older to capture real-time impacts from inflation, prices, and interest rates. The research focuses on seniors as well as people in the critical pre-retirement window, ages 50 to 64, a group that the foundation says is increasingly vulnerable.
Claire Casey, president of the AARP Foundation, said adults 50 to 64 are in a “more precarious position” by multiple measures. More than 60 percent report worries about paying for food, and over 40 percent say they ran out of food in the past month. Most respondents say they lack enough savings to cover a $500 emergency, and just under one-third reported a significant drop in household income over the prior three months.
Casey noted that what might be a manageable setback for some households, such as a car repair or sudden childcare need, can become a major blow for older low-wage workers. They are more likely to fall into long-term unemployment and to accept new jobs that pay less than their previous positions.
The surveys also show more older adults taking second jobs this year. While Census Bureau data indicates Social Security keeps millions out of poverty, rising costs continue to strain budgets, including for those who were otherwise getting by.
Ken Heideman, 67, of Nashua, New Hampshire, said he has been drawing down savings to cover monthly shortfalls tied to higher prices, including fuel and groceries. He described the cumulative impact of steady increases as difficult to spot until checkout and said he does not expect living costs to ease soon.
The AARP Foundation plans to continue its quarterly tracking to better understand how older Americans are navigating persistent inflation and volatile economic conditions during their peak earning and pre-retirement years. Rising borrowing costs and mortgage rates above 7% have added to the financial pressure many households face.
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